One of Seattle’s most expensive homes has been put back on the market with a $15 million price cut — illustrating how even the most luxurious homes aren’t immune to the cooling housing market.
The five-bedroom mansion in Hunts Point, a city on the eastern shore of Lake Washington, went on the market for $85 million in the spring of 2022, but was sold after failing to sell.
This summer, the luxury home owned by telecommunications magnate Bruce McCaw and previously owned by saxophonist Kenny G. offered again for $70 million.
With more than 300 feet of Lake Washington shoreline, space to land a seaplane and 150-foot yacht, and a pool and tennis court on more than four acres of land, the sprawling estate is the second most expensive property in the United States. the market in Western Washington, according to the Seattle Times.
“While this home is one of a kind… a trophy and very unique, it is still part of the housing market,” Windermere sales agent Anna Riley told the outlet. “We had a lot of interest before, but we expect that we will have more interest for this award now.”
The five-bedroom mansion in Hunts Point, a city on the eastern shore of Lake Washington, went on the market for $85 million in the spring of 2022, but was sold after failing to sell
The luxury home is owned by telecommunications mogul Bruce McCaw and was formerly owned by saxophonist Kenny G
It comes amid a widespread cooling in the real estate market, fueled by rising mortgage rates. An average homebuyer now faces mortgage payments nearly $1,000 a month more expensive than they were two years ago as interest rates hover around 7 percent.
Rising interest rates have pushed buyers aside and homeowners to “lock up” their property to cling to cheaper mortgage deals.
Luxury real estate listings are more likely to sell to cash buyers who don’t need to finance the property – shielding them from some of the effects of higher rates.
But even high-end homes like the Hunts Point mansion — which also features an on-site gym, cabana, and beach house for guest use — have been hit by the market’s cooling.
“Even cash buyers look at what other people are paying,” Riley said. ‘If the market has generally fallen, this may also have consequences for the more expensive properties.’
However, she added that it may take a few years for properties to sell at this level “because the buyer already feels comfortable somewhere” and that there is a much smaller group of ultra-wealthy buyers.
Experts warn that even the most luxurious homes are not immune to the cooling housing market
The home features grand interior details, a private gym, cabana and beach house for guest use
The sprawling estate is the second most expensive listing in the Western Washington market, according to the Seattle Times
The lake house isn’t the only luxury property to drop in price in Washington.
Zillow estimates that values for the top 5 percent of Seattle-area homes, averaging $2.5 million, were 12 percent lower last month than a year earlier.
The most affordable homes, averaging $490,600, fell 2.5 percent in value over the same period, while mid-price homes, averaging $704,600, fell 6.5 percent in price.
Former Seattle Seahawks quarterback Russell Wilson’s six-bedroom home also has $2 million cuts entry price since last year.
The property in Bellevue – a city across Lake Washington from Seattle – hit the market in spring 2022 for $28 million and has since fallen to $26 million.
The six-bedroom home of former Seattle Seahawks quarterback Russell Wilson has been slashed from its sale price by $2 million since last year
The Bellevue property is listed for $26 million this summer – down from $28 million in 2022
Windermere listing agent Carmen Gayton said high-end buyers are “just as careful in this market.”
“Their money can be tied up in stocks, bonds and real estate, just like everyone else’s money,” she added.
According to a Redfin reportU.S. luxury property sales fell 44.6 percent year over year during the three months ended January 31, 2023.
During the same period, sales of luxury homes in the Seattle area fell 50.5 percent from a year earlier. Redfin defined luxury homes as those in the top 5 percent by value of a local market, or $2.5 million in the Seattle area.